Close X
Saturday, November 30, 2024
ADVT 
International

UK Government Mulls Co-investing In Tata Steel Plant To Save It

The Canadian Press, 12 Apr, 2016 12:32 PM
  • UK Government Mulls Co-investing In Tata Steel Plant To Save It
LONDON — The British government says it is willing to put public money into a deal to save steel plants threatened with closure amid a glut of cheap Chinese imports.
 
Business Secretary Sajid Javid told the House of Commons on Monday that the government was prepared to co-invest with any buyer of the plants Tata Steel plans to sell. These include the U.K.'s largest steelworks, at Port Talbot in South Wales, which employs 5,500 workers.
 
"I've been in contact with potential buyers, making clear that the government stands ready to help," Javid said. "This includes looking at the possibility of co-investing with a buyer on commercial terms."
 
Javid's comments underscore the importance the government has put on ensuring the U.K. steel industry survives as a source of employment and raw materials for the nation's economy. Tata Steel last month said it planned to sell the company's operations in Britain because of losses estimated at 1 million pounds ($1.42 million) a day. The announcement came after Sahaviriya Steel Industries shut its Redcar plant in October, eliminating 2,200 jobs.
 
While the government has resisted calls from unions and opposition politicians to nationalize the Port Talbot plant, Javid left open that possibility in his remarks on Monday.
 
 
"We haven't ruled anything out; I've been clear about that," he said. "But what we're also very clear on is that the best way forward ... if you look at the best steel operators in the world, they are commercially run, they're privately run. Nationalization is rarely the answer."
 
In a separate development, Tata agreed Monday to sell its European long products unit to a London investment firm, safeguarding 4,800 jobs in England and France.
 
The sale of Tata's Scunthorpe works in northern England and associated operations to Greybull Capital has been nine months in the making and is separate from the U.K. government's effort to save the Port Talbot plant. It will be rebranded as British Steel upon completion of the deal in eight weeks.
 
Tata said the unit, which makes plates, rods and semi-finished steel for industries such as construction and shipbuilding, will be sold for a nominal sum, though Greybull will take on "relevant liabilities." Greybull said it is arranging a 400 million pound ($569 million) investment and financing package.
 
"We are now focused on taking the deal to completion in order that the business can start its next chapter with confidence," said Marc Meyohas, a Greybull partner.
 
 
Tata Steel on Monday started the formal process of selling the bulk of its U.K. operations. So far, London-based Liberty House is the only company to express interest in Port Talbot.

MORE International ARTICLES

Syrian Army Retakes Ancient Palmyra City, 400 ISIS Militants Killed

Syrian Army Retakes Ancient Palmyra City, 400 ISIS Militants Killed
The Syrian army fully recaptured the ancient city of Palmyra in central Syria on Sunday, following days of intense battles against the Islamic State (IS) group.

Syrian Army Retakes Ancient Palmyra City, 400 ISIS Militants Killed

Pakistan Army Called To Rein In Violent Pro-Mumtaz Qadri Protestors

Pakistan Army Called To Rein In Violent Pro-Mumtaz Qadri Protestors
The government has called in the army to control the law and order situation.

Pakistan Army Called To Rein In Violent Pro-Mumtaz Qadri Protestors

Indian-Origin Law Professor Surya Deva Appointed UN Adviser On Human Rights And Businesses

Indian-Origin Law Professor Surya Deva Appointed UN Adviser On Human Rights And Businesses
The Council approved in Geneva on Thursday his appointment to the position formally known as "Special Procedure Mandate Holder".

Indian-Origin Law Professor Surya Deva Appointed UN Adviser On Human Rights And Businesses

Post-Quake, Cracks And Holes Develop In Mt Everest

Post-Quake, Cracks And Holes Develop In Mt Everest
These ice-fall doctors prepare the route from the base camp to the summit, paving the way for climbers to ascend the peak.

Post-Quake, Cracks And Holes Develop In Mt Everest

Arvind Kejriwal Named Among World’s 50 Greatest Leaders By Fortune, PM Modi Not On List

Arvind Kejriwal Named Among World’s 50 Greatest Leaders By Fortune, PM Modi Not On List
47-year-old Aam Aadmi Party chief is ranked 42nd on the list and is the sole leader from Ind

Arvind Kejriwal Named Among World’s 50 Greatest Leaders By Fortune, PM Modi Not On List

Indian-Origin Woman Restaurateur Surinder Kaur Cheema Is A Hit In Ghana

Indian-Origin Woman Restaurateur Surinder Kaur Cheema Is A Hit In Ghana
Surinder Kaur Cheema came to Accra four decades ago from her native Baroda in India's Gujarat state to support her businessman husband. 

Indian-Origin Woman Restaurateur Surinder Kaur Cheema Is A Hit In Ghana